The class action has been launched by Victoria-based firm Maddens Lawyers and is being funded by Woodsford.

The filing alleges that some diesel engines developed by Toyota include design elements that “tamper” with the vehicle’s emissions control system, “in order to enhance the car’s performance”, Woodsford claimed in a statement.

Speaking about the proceedings, Maddens class action principal Kathryn Emeny said that, on some Toyota models, the emissions control system is alleged to perform differently in test conditions compared to on-road conditions.

This results, she submitted, in cars passing regulatory testing, but then emitting unlawfully high levels of nitrogen oxide when on the road. 

“Toyota has historically been one of Australia’s most trusted brands. It is Australia’s top-selling car brand.

“If the court finds that Toyota has been using ‘defeat devices’, then there are literally hundreds of thousands of people driving a car that simply should have never been allowed on our roads,” she said.

“This class action is one of the biggest claims in Australia’s legal history.

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“It could result in each participant receiving tens of thousands of dollars of compensation.”

The number of impacted vehicles means that the “potential ramifications for Toyota are enormous”, the funder went on, adding that the proceedings “could completely overshadow VW’s ‘dieselgate’ scandal”.

The class action is being led by plaintiff Adam Rowe, on behalf of up to half a million eligible vehicle owners, Woodsford said.

Woodsford chief investment officer (EMEA and APAC) Charlie Morris added that Toyota’s conduct in this matter is “egregious”.

“Not only do these defeat devices deceive consumers into buying a vehicle that is different to what they thought they were buying, they are also damaging to the environment, as diesel cars that do not meet the required emissions standards continue to find their way onto our roads,” he said.

“Woodsford is dedicated to holding big businesses like Toyota to account over wrongdoing of this kind so that consumers receive the compensation they are due, but also in the hope that actions of this kind will lead to a step-change in the behaviour of big business.”

In a statement, Toyota Australia has said that it stands by its reporting, monitoring and evaluation standards in relation to the emissions for all its vehicles.

“We will defend the class action announced today rigorously,” the company said.

“As this matter is before the courts, we have no further comment.”